Limit-up candlestick is not a万能钥匙
But most people haven't even found the keyhole
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What are you most afraid of when watching the market?
Clearly seeing a big bullish candle, rushing in will just get you trapped.
The problem is not with the candlestick itself, but with where it appears.
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Remember three sentences:
Limit-up candlestick + high volume = really strong.
Limit-up candlestick + low volume = a trap.
Limit-up candlestick + previous high resistance = may turn against you at any time.
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Also bring along the old buddies like hammer, doji, engulfing.
Hammer only works when it has fallen enough,
Doji needs to be confirmed with a lower open the next day,
Engulfing pattern needs to check if the left bar is thick enough.
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Finally, a reminder:
In a bull market, limit-up is fueling,
In a bear market, limit-up is often an escape window.
If the market background is wrong, no matter how beautiful the pattern, you must hold back your hand.
